KATHMANDU: The second phase of the Ring Road expansion under Chinese assistance has moved forward after a formal agreement was signed on Wednesday.

An agreement was signed between Minister for Physical Infrastructure and Transport as well as Urban Development Sunil Lamsal and Chinese Ambassador Zhang Maoming for the project’s implementation.

Under the deal, 8.2 kilometres of road and bridge works will be constructed from Kalanki to Busundhara, with China providing around Rs 11 billion in grant assistance.

The first phase of the project, from Koteshwor to Kalanki, was completed in 2019. While the second phase envisions 11.6 kilometres of expansion, the Busundhara section has been prioritised.

The original 27.2-kilometre Ring Road was built in 1977 with Chinese assistance, and the first section was handed over to Nepal in 2019.

Minister Lamsal said the government would facilitate implementation and resolve issues as they arise, while the Chinese envoy said Chinese investors were interested in Nepal if the investment environment remains favourable.